Reported Earnings • Apr 25
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥209 (up from JP¥157 in FY 2025). Revenue: JP¥209.8b (up 17% from FY 2025). Net income: JP¥9.14b (up 33% from FY 2025). Profit margin: 4.4% (up from 3.8% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) also surpassed analyst estimates by 2.0%. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 24
METAWATER Co., Ltd., Annual General Meeting, Jun 23, 2026 METAWATER Co., Ltd., Annual General Meeting, Jun 23, 2026. Announcement • Apr 21
METAWATER Co., Ltd. to Report Fiscal Year 2026 Results on Apr 24, 2026 METAWATER Co., Ltd. announced that they will report fiscal year 2026 results on Apr 24, 2026 Price Target Changed • Apr 07
Price target increased by 17% to JP¥3,100 Up from JP¥2,640, the current price target is an average from 3 analysts. New target price is 13% below last closing price of JP¥3,565. Stock is up 99% over the past year. The company is forecast to post earnings per share of JP¥205 for next year compared to JP¥157 last year. Announcement • Mar 25
METAWATER Co., Ltd. (TSE:9551) completed the acquisition of 48.94% stake in Suido Kiko Kaisha, Ltd. (TSE:6403) from a group of shareholders. METAWATER Co., Ltd. (TSE:9551) proposed to acquire 48.94% stake in Suido Kiko Kaisha, Ltd. (TSE:6403) from a group of shareholders for ¥8.5 billion on February 5, 2026. A cash consideration of ¥4,050 per share will be paid by METAWATER Co., Ltd. METAWATER also enter agreements under which Toray has agreed not to tender any of Suido Kiko Kaisha Shares held by Toray : 51.06%. If the Tender Offeror fails to acquire all of the shares of Suido Kiko Kaisha through the Tender Offer, after the completion of the Tender Offer, the Tender Offeror plans to request the implementation of a series of procedures necessary to make the Tender Offeror and Toray the only shareholders of the Target Company through the Share Consolidation. The METAWATER intends to make Suido Kiko Kaisha private by acquiring all of Suido Kiko Kaisha Shares. After the completion of the Squeeze-Out Procedure, the plan in principle is for Toray and the Tender Offeror to hold 51% and 49% of the voting rights in Suido Kiko Kaisha.
The transaction is subject to minimum tender. The Board of Directors of Suido Kiko Kaisha, Ltd. formed a special committee for the transaction. The expected completion of the transaction is March 24, 2026.
Mori Hamada & Matsumoto LPC acted as legal advisor for METAWATER Co., Ltd. Mizuho Securities Co., Ltd. acted as financial advisor for METAWATER Co., Ltd. Southgate Law Office acted as legal advisor for Suido Kiko Kaisha, Ltd. Sumitomo Mitsui Banking Corporation acted as financial advisor for Suido Kiko Kaisha, Ltd.
METAWATER Co., Ltd. (TSE:9551) completed the acquisition of 48.94% stake in Suido Kiko Kaisha, Ltd. (TSE:6403) from a group of shareholders on March 24, 2026. The total number of Tendered Securities (1,493,025 shares) was equal to or greater than the minimum number of shares to be purchased (669,400 shares), the Tender Offeror will purchase all of the Tendered Securities, as stated in the public notice of commencement of the tender offer and the tender offer registration statement. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 05 June 2026. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). New Risk • Mar 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Feb 06
METAWATER Co., Ltd. (TSE:9551) proposed to acquire 48.94% stake in Suido Kiko Kaisha, Ltd. (TSE:6403) from a group of shareholders for ¥8.5 billion. METAWATER Co., Ltd. (TSE:9551) proposed to acquire 48.94% stake in Suido Kiko Kaisha, Ltd. (TSE:6403) from a group of shareholders for ¥8.5 billion on February 5, 2026. A cash consideration of ¥4,050 per share will be paid by METAWATER Co., Ltd. METAWATER also enter agreements under which Toray has agreed not to tender any of Suido Kiko Kaisha Shares held by Toray : 51.06%. If the Tender Offeror fails to acquire all of the shares of Suido Kiko Kaisha through the Tender Offer, after the completion of the Tender Offer, the Tender Offeror plans to request the implementation of a series of procedures necessary to make the Tender Offeror and Toray the only shareholders of the Target Company through the Share Consolidation. The METAWATER intends to make Suido Kiko Kaisha private by acquiring all of Suido Kiko Kaisha Shares. After the completion of the Squeeze-Out Procedure, the plan in principle is for Toray and the Tender Offeror to hold 51% and 49% of the voting rights in Suido Kiko Kaisha.
The transaction is subject to minimum tender. The Board of Directors of Suido Kiko Kaisha, Ltd. formed a special committee for the transaction. The expected completion of the transaction is March 24, 2026.
Mori Hamada & Matsumoto LPC acted as legal advisor for METAWATER Co., Ltd. Mizuho Securities Co., Ltd. acted as financial advisor for METAWATER Co., Ltd. Southgate Law Office acted as legal advisor for Suido Kiko Kaisha, Ltd. Sumitomo Mitsui Banking Corporation acted as financial advisor for Suido Kiko Kaisha, Ltd. Reported Earnings • Jan 29
Third quarter 2026 earnings: EPS and revenues exceed analyst expectations Third quarter 2026 results: EPS: JP¥38.48 (up from JP¥34.56 in 3Q 2025). Revenue: JP¥47.3b (up 21% from 3Q 2025). Net income: JP¥1.68b (up 11% from 3Q 2025). Profit margin: 3.6% (down from 3.8% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jan 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Dec 27
METAWATER Co., Ltd. to Report Q3, 2026 Results on Jan 28, 2026 METAWATER Co., Ltd. announced that they will report Q3, 2026 results on Jan 28, 2026 Declared Dividend • Dec 03
First half dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 30th March 2026 Payment date: 5th June 2026 Dividend yield will be 2.1%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (11% earnings payout ratio) and cash flows (16% cash payout ratio). The dividend has increased by an average of 9.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 2.5% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 28
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥36.81 (up from JP¥20.95 loss in 2Q 2025). Revenue: JP¥42.6b (up 25% from 2Q 2025). Net income: JP¥1.61b (up JP¥2.52b from 2Q 2025). Profit margin: 3.8% (up from net loss in 2Q 2025). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Oct 27
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to JP¥3,145. The fair value is estimated to be JP¥2,525, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 24% in the next 2 years. Buy Or Sell Opportunity • Sep 22
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 41% to JP¥3,100. The fair value is estimated to be JP¥2,583, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 24% in the next 2 years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥28.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.0%). Announcement • Sep 21
METAWATER Co., Ltd. to Report Q2, 2026 Results on Oct 27, 2025 METAWATER Co., Ltd. announced that they will report Q2, 2026 results on Oct 27, 2025 Price Target Changed • Sep 03
Price target increased by 8.9% to JP¥2,360 Up from JP¥2,167, the current price target is an average from 2 analysts. New target price is 22% below last closing price of JP¥3,040. Stock is up 79% over the past year. The company is forecast to post earnings per share of JP¥179 for next year compared to JP¥157 last year. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,789, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Machinery industry in Japan. Total returns to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,488 per share. Reported Earnings • Jul 27
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: JP¥22.98 loss per share (improved from JP¥36.18 loss in 1Q 2025). Revenue: JP¥33.1b (up 32% from 1Q 2025). Net loss: JP¥1.00b (loss narrowed 36% from 1Q 2025). Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 43%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 6% per year. Declared Dividend • Jul 09
Final dividend of JP¥28.00 announced Shareholders will receive a dividend of JP¥28.00. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 2.4%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 6.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 27
METAWATER Co., Ltd. to Report Q1, 2026 Results on Jul 25, 2025 METAWATER Co., Ltd. announced that they will report Q1, 2026 results on Jul 25, 2025 Reported Earnings • Jun 25
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥157 (down from JP¥158 in FY 2024). Revenue: JP¥179.1b (up 8.2% from FY 2024). Net income: JP¥6.85b (flat on FY 2024). Profit margin: 3.8% (down from 4.2% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 5.9%. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 3% per year. Announcement • Jun 24
METAWATER Co., Ltd. Announces Executive Changes METAWATER Co., Ltd. at the AGM held on June 24, 2025 approved the appointment of Hajime Ito as Director. Akihiro Teranishi Audit & Supervisory Board Member (not reelected); Michiko Tanji is newly elected as Audit & Supervisory Board Member; Taku Fukui- Independent officer elected Outside Audit & Supervisory Board Member and Masami Kusunoki- Independent officer Outside Audit & Supervisory Board Member (not reelected). Hajime Ito, an Executive Officer, is the Executive General Manager of both the System Solution Division and the Cost Engineering Center. Buy Or Sell Opportunity • May 06
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 7.7% to JP¥2,035. The fair value is estimated to be JP¥1,695, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 4.8% per annum. Earnings are also forecast to grow by 6.9% per annum over the same time period. Reported Earnings • Apr 25
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥157 (down from JP¥158 in FY 2024). Revenue: JP¥179.1b (up 8.2% from FY 2024). Net income: JP¥6.85b (flat on FY 2024). Profit margin: 3.8% (down from 4.2% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 5.9%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 2% per year. Announcement • Apr 24
METAWATER Co., Ltd., Annual General Meeting, Jun 24, 2025 METAWATER Co., Ltd., Annual General Meeting, Jun 24, 2025. Announcement • Mar 26
Metawater Co., Ltd. Announces Executive Changes METAWATER Co., Ltd. at its board meeting held on March 26, 2025, adopted resolution to appoint Shingo Nishimura Executive General Manager, Corporate Strategy Planning Office, effective April 1, 2025. New Duties: Responsible for Quality Assurance Management Office. METAWATER Co., Ltd. announced that Shigeru Hatsumata will resign as Audit & Supervisory Board Member at the conclusion of the annual general meeting of shareholders scheduled to be held on June 24, 2025. Announcement • Mar 22
METAWATER Co., Ltd. to Report Fiscal Year 2025 Results on Apr 24, 2025 METAWATER Co., Ltd. announced that they will report fiscal year 2025 results on Apr 24, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥26.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 06 June 2025. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). Reported Earnings • Jan 31
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: JP¥34.56 (down from JP¥40.35 in 3Q 2024). Revenue: JP¥39.3b (up 4.1% from 3Q 2024). Net income: JP¥1.51b (down 14% from 3Q 2024). Profit margin: 3.8% (down from 4.7% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) exceeded analyst estimates by 122%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 3% per year. Announcement • Jan 06
METAWATER Co., Ltd. to Report Q3, 2025 Results on Jan 30, 2025 METAWATER Co., Ltd. announced that they will report Q3, 2025 results on Jan 30, 2025 Declared Dividend • Dec 04
First half dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 28th March 2025 Payment date: 6th June 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (16% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 01
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: JP¥20.95 loss per share (further deteriorated from JP¥6.97 loss in 2Q 2024). Revenue: JP¥34.2b (up 7.3% from 2Q 2024). Net loss: JP¥914.0m (loss widened 201% from 2Q 2024). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 31%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Announcement • Sep 21
METAWATER Co., Ltd. to Report Q2, 2025 Results on Oct 30, 2024 METAWATER Co., Ltd. announced that they will report Q2, 2025 results on Oct 30, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 28% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.9%). Reported Earnings • Jul 27
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: JP¥36.18 loss per share (improved from JP¥43.47 loss in 1Q 2024). Revenue: JP¥25.0b (up 18% from 1Q 2024). Net loss: JP¥1.58b (loss narrowed 17% from 1Q 2024). Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 38%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Price Target Changed • Jul 19
Price target decreased by 9.7% to JP¥2,160 Down from JP¥2,393, the current price target is an average from 3 analysts. New target price is 16% above last closing price of JP¥1,862. Stock is up 4.9% over the past year. The company is forecast to post earnings per share of JP¥146 for next year compared to JP¥158 last year. Declared Dividend • Jul 11
Final dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 2.5%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.8% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 19% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 26
METAWATER Co., Ltd. to Report Q1, 2025 Results on Jul 25, 2024 METAWATER Co., Ltd. announced that they will report Q1, 2025 results on Jul 25, 2024 Reported Earnings • Apr 25
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥158 (up from JP¥143 in FY 2023). Revenue: JP¥165.6b (up 9.8% from FY 2023). Net income: JP¥6.88b (up 10.0% from FY 2023). Profit margin: 4.2% (up from 4.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.9%. Earnings per share (EPS) also surpassed analyst estimates by 4.2%. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 1% per year. Announcement • Mar 29
METAWATER Co., Ltd., Annual General Meeting, Jun 25, 2024 METAWATER Co., Ltd., Annual General Meeting, Jun 25, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 03 June 2024. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (1.9%). Announcement • Mar 17
METAWATER Co., Ltd. to Report Fiscal Year 2024 Results on Apr 24, 2024 METAWATER Co., Ltd. announced that they will report fiscal year 2024 results on Apr 24, 2024 Reported Earnings • Feb 02
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: JP¥40.35 (up from JP¥6.22 in 3Q 2023). Revenue: JP¥37.7b (up 22% from 3Q 2023). Net income: JP¥1.76b (up JP¥1.49b from 3Q 2023). Profit margin: 4.7% (up from 0.9% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) also surpassed analyst estimates by 92%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 1% per year. Announcement • Dec 28
METAWATER Co., Ltd. to Report Q3, 2024 Results on Jan 31, 2024 METAWATER Co., Ltd. announced that they will report Q3, 2024 results on Jan 31, 2024 New Risk • Nov 30
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (7.3% increase in shares outstanding). Announcement • Nov 15
METAWATER Co., Ltd. Provides Dividend Guidance for the Fiscal Year Ending March 31, 2024 METAWATER Co., Ltd. provided dividend guidance for the fiscal year ending March 31, 2024. For the year, the company expects to pay dividend of JPY 22.00 per share against JPY 22.00 per share paid a year ago. Reported Earnings • Oct 28
Second quarter 2024 earnings released: JP¥6.97 loss per share (vs JP¥14.59 loss in 2Q 2023) Second quarter 2024 results: JP¥6.97 loss per share (improved from JP¥14.59 loss in 2Q 2023). Revenue: JP¥31.9b (up 19% from 2Q 2023). Net loss: JP¥304.0m (loss narrowed 52% from 2Q 2023). Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 9% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥22.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.1%). Announcement • Sep 07
METAWATER Co., Ltd. to Report Q2, 2024 Results on Oct 26, 2023 METAWATER Co., Ltd. announced that they will report Q2, 2024 results on Oct 26, 2023 New Risk • Jul 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.5% Last year net profit margin: 5.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.5% net profit margin). Reported Earnings • Jul 27
First quarter 2024 earnings released: JP¥43.47 loss per share (vs JP¥21.83 loss in 1Q 2023) First quarter 2024 results: JP¥43.47 loss per share (further deteriorated from JP¥21.83 loss in 1Q 2023). Revenue: JP¥21.2b (up 6.2% from 1Q 2023). Net loss: JP¥1.90b (loss widened 99% from 1Q 2023). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jun 30
METAWATER Co., Ltd. to Report Q1, 2024 Results on Jul 26, 2023 METAWATER Co., Ltd. announced that they will report Q1, 2024 results on Jul 26, 2023 Reported Earnings • Jun 23
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥143 (up from JP¥143 in FY 2022). Revenue: JP¥150.7b (up 11% from FY 2022). Net income: JP¥6.25b (flat on FY 2022). Profit margin: 4.1% (down from 4.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 28
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥143 (up from JP¥143 in FY 2022). Revenue: JP¥150.7b (up 11% from FY 2022). Net income: JP¥6.25b (flat on FY 2022). Profit margin: 4.1% (down from 4.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 05 June 2023. Payout ratio is a comfortable 26% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.4%). Reported Earnings • Feb 01
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: JP¥6.22 (down from JP¥13.02 in 3Q 2022). Revenue: JP¥31.0b (up 14% from 3Q 2022). Net income: JP¥271.0m (down 52% from 3Q 2022). Profit margin: 0.9% (down from 2.1% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.6%. Earnings per share (EPS) missed analyst estimates by 36%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Dec 22
METAWATER Co., Ltd. to Report Q3, 2023 Results on Jan 31, 2023 METAWATER Co., Ltd. announced that they will report Q3, 2023 results on Jan 31, 2023 Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 6 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Outside Director Kaoru Aizawa is the most experienced director on the board, commencing their role in 2016. Independent Outside Auditor Masami Kusunoki was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 30
Second quarter 2023 earnings released: JP¥14.59 loss per share (vs JP¥7.19 loss in 2Q 2022) Second quarter 2023 results: JP¥14.59 loss per share (further deteriorated from JP¥7.19 loss in 2Q 2022). Revenue: JP¥26.8b (up 14% from 2Q 2022). Net loss: JP¥636.0m (loss widened 103% from 2Q 2022). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.4%). Reported Earnings • Jul 28
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: JP¥21.83 loss per share (up from JP¥47.73 loss in 1Q 2022). Revenue: JP¥19.9b (up 25% from 1Q 2022). Net loss: JP¥951.0m (loss narrowed 54% from 1Q 2022). Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Over the next year, revenue is forecast to grow 6.2%, compared to a 9.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 24
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥143 (down from JP¥151 in FY 2021). Revenue: JP¥135.6b (up 1.7% from FY 2021). Net income: JP¥6.25b (down 4.5% from FY 2021). Profit margin: 4.6% (down from 4.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Over the next year, revenue is forecast to grow 6.9%, compared to a 9.3% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 30
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥143 (down from JP¥151 in FY 2021). Revenue: JP¥135.6b (up 1.7% from FY 2021). Net income: JP¥6.25b (down 4.5% from FY 2021). Profit margin: 4.6% (down from 4.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Over the next year, revenue is forecast to grow 6.3%, compared to a 8.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Tsuneo Tanai was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 04 June 2022. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (2.0%). Board Change • Mar 07
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Tsuneo Tanai was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Jan 28
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: JP¥13.02 (down from JP¥37.49 in 3Q 2021). Revenue: JP¥27.1b (up 11% from 3Q 2021). Net income: JP¥567.0m (down 65% from 3Q 2021). Profit margin: 2.1% (down from 6.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to stay flat compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 28
Second quarter 2022 earnings released: JP¥7.19 loss per share (vs JP¥19.45 loss in 2Q 2021) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2022 results: Revenue: JP¥23.5b (up 19% from 2Q 2021). Net loss: JP¥313.0m (loss narrowed 63% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.4%).